Lennar Corporation (LEN)
Profitability ratios
Return on sales
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.96% | 99.00% | -0.82% | 98.21% | 21.11% |
| Operating profit margin | 97.93% | 97.99% | -1.67% | 96.47% | 15.48% |
| Pretax margin | 14.53% | 15.13% | 17.76% | 21.35% | 13.88% |
| Net profit margin | 11.10% | 11.50% | 13.70% | 16.33% | 10.96% |
Lennar Corporation's profitability ratios show fluctuations over the years. The gross profit margin has seen a significant improvement, reaching a peak of 99.00% in November 2023, after starting at 21.11% in November 2020. This indicates the company's ability to efficiently manage its cost of goods sold.
Similarly, the operating profit margin also exhibited growth, hitting a peak of 97.99% in November 2023, from a low of -1.67% in November 2022. This reflects Lennar's capacity to control its operating expenses and generate profits from its core business activities.
The pretax margin has shown a slight decline over the years, starting at 13.88% in November 2020 and gradually decreasing to 14.53% in November 2024. This suggests that the company's pre-tax earnings relative to its total revenue have been somewhat inconsistent.
Lastly, the net profit margin, representing the company's bottom-line profitability, has also witnessed fluctuations. Starting at 10.96% in November 2020, it reached a peak of 16.33% in November 2021 before declining to 11.10% in November 2024. This indicates Lennar's ability to generate profits after considering all expenses, including operating and non-operating costs.
Overall, Lennar Corporation's profitability ratios showcase a mix of improvements and fluctuations, indicating both strengths and potential areas for further enhancement in managing its profitability.
Return on investment
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 84.01% | 85.50% | -1.48% | 78.82% | 11.63% |
| Return on assets (ROA) | 9.52% | 10.04% | 12.15% | 13.34% | 8.23% |
| Return on total capital | 18.48% | 19.48% | 24.80% | 27.79% | 19.35% |
| Return on equity (ROE) | 14.11% | 14.82% | 19.15% | 21.28% | 13.70% |
Lennar Corporation's profitability ratios indicate a fluctuating trend over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown significant volatility, ranging from -1.48% to 85.50% over the years. This ratio measures the company's operating efficiency in generating profits from its assets, with the highest point achieved in 2023.
2. Return on Assets (ROA):
- The ROA has also varied, with values between 8.23% and 13.34%. This ratio reflects the company's overall profitability in relation to its total assets, showing a peak in 2021.
3. Return on Total Capital:
- The Return on Total Capital has fluctuated between 18.48% and 27.79%. This ratio demonstrates the company's ability to generate returns for both equity and debt holders, with the highest return recorded in 2021.
4. Return on Equity (ROE):
- The ROE has exhibited a fluctuating pattern, ranging from 13.70% to 21.28%. This ratio assesses the company's profitability in relation to shareholder equity, showing the highest return in 2021.
Overall, Lennar Corporation's profitability ratios reflect a mix of performance levels over the years, with certain years demonstrating stronger profitability measures compared to others.